BankAtlantic Bancorp Inc., of Fort Lauderdale, Fla., reported first-quarter earnings of $6.7 million, down 66% from the same quarter last year. Diluted earnings per share were 11 cents, down 65%, and 2 cents below analysts' expectations.
In a press release issued after the markets closed on Wednesday, the $6.4 billion-asset BankAtlantic attributed the decline in earnings to increased expenses associated with its long-term branch expansion and marketing programs. Its total noninterest expenses for the first quarter rose 24% from the same quarter last year, to $129.6 million.
In a conference call Thursday, Alan B. Levan, the chairman and chief executive officer of BankAtlantic, said the company had opened three branches in the first quarter and plans to open 16 more before the end of 2006. It also plans to open 27 in 2007. BankAtlantic's net interest income declined 7%, to $53 million for the quarter. Its noninterest income was up 8%, to $84.9 million. The company's provision for loan losses was $163,000. In the first quarter last year, it had recoveries of $3.9 million.
The company's stock was down more than 2% in early trading Thursday but recovered after Mr. Levan said on a conference call that it might use proceeds from the previously announced initial public offering of its Ryan Beck & Co. subsidiary to buy back stock. The stock closed at $15.34, up 0.13% from the previous day's close.
